PhysicsWallah’s Teacher Problem, DeHaat’s Mixed FY25 & More

Faculty Discontent At PhysicsWallah  

As Alakh Pandey-led PhysicsWallah (PW) gears up to be the first Indian edtech to go public, a storm is brewing within its ranks. The company is facing a significant faculty problem, marked by allegations of unfair terminations, an opaque review system, and a culture that prioritises student retention over educational outcomes.

A Revolving Door of Teachers: Faculty attrition has become a major red flag, soaring from 18% in FY23 to a staggering 40.4% in FY24 before settling at 26% in FY25. Teachers report receiving “mutual separation” emails mid-academic year—a highly unusual practice. 

This has sparked legal challenges, with former educators alleging unfair termination and discrepancies in their final settlements, claiming they received only one month’s salary instead of the promised two. While PW claims it communicated policy changes, the disputes threaten to tarnish its pre-IPO image.

When Students Are The Judge: At the heart of the discontent is PW’s unique, student-led review system. Students can not only rate teachers but also vote to have them removed from a course. Faculty members argue this creates an unfair power dynamic, where they can’t challenge students for fear of negative ratings. They also allege that centre managers, focussed on enrollment, hold the power to fire teachers on a “whim and fancy,” with little to no oversight.

The High Cost of Low Prices: PW’s disruptive, low-cost model appears to be driving these issues. To maintain its affordable fees, the startup has allegedly cut costs by hiring inexperienced, lower-paid faculty — sometimes even undergraduates—to teach complex JEE/NEET syllabi. This has led to a 58% spike in student dropouts and a 13% rise in refunds in FY25, totaling INR 26 Cr. 

As PW eyes its public debut, it faces a critical balancing act: its rapid growth and affordability cannot come at the cost of its most valuable asset—its teachers. Can it pull this off? 

From The Editor’s Desk

DeHaat’s Mixed FY25: The agritech startup reported a profit of INR 369 Cr in FY25 on the back of non-cash gains worth INR 576.1 Cr. Without the gains, the startup would have posted a loss of INR 207 Cr. However, DeHaat’s operating revenue jumped 11% YoY to INR 3,009.9 Cr.

New-Age Tech Stocks Bleed: Of the 39 startup stocks under Inc42’s coverage, 34 ended last week in the red. MobiKwik and Swiggy were the biggest losers while Smartworks and BlackBuck emerged as the biggest gainers.

Startup Funding Stays On Course: Indian startups cumulatively raised $377.4 Mn across 28 deals last week, up 19% from $316.6 Mn raised in the previous week. PharmEasy and Emergent took home the biggest cheques at $191.7 Mn and $23 Mn, respectively. 

Inside Pepperfry’s Collapse: Once valued at $350 Mn and poised for an IPO, the furniture marketplace is being acquired by TCC Concept in a distress sale for less than a third of its peak valuation of INR 3,100 Cr. So, what led to Pepperfry’s downfall?

Meta Vs CCI: The NCLAT has reserved its order on the appeals filed by the social media giant, challenging the antitrust watchdog’s INR 213 Cr penalty. In 2024, CCI had penalised Meta for alleged anti-competitive practices relating to WhatsApp’s 2021 privacy policy update.

DroneAcharya In The Red: The drone manufacturer reported a net loss of INR 15.1 Cr in H2 FY25 as against a profit of INR 2.2 Cr in the year-ago period. Largely to blame for this was shrinking operating revenue, which tanked 47% YoY to INR 7.6 Cr.

ONDC To Get A New CBO: Paytm’s senior vice president, Rohit Lohia, will likely join the state-backed Open Network For Digital Commerce as its new CBO. His appointment comes six months after Shireesh Joshi resigned as the CBO of the network. 

Startup FY25 Financial Tracker: Seventy-one new-age tech companies reported a cumulative operating revenue of INR 2.48 Lakh Cr in FY25, up 20% YoY. While 30 of them reported a net loss of INR 16,501 Cr, 41 generated a total profit of INR 7,959.56 Cr.

Inc42 Startup Spotlight

Tryo’s “Try First, Pay Later” Ecommerce Model

India’s fashion ecommerce market is booming. Yet, 40% of consumers are hesitant to shop online due to persistent concerns about fit, fabric quality and product authenticity. Bengaluru-based Tryo is trying to solve this problem with its “try first, pay later” model.

Fixing Purchase Anxiety: Founded in 2025, Tryo allows its customers to order up to 10 clothing items in various sizes and styles with zero upfront payment. Deliveries arrive within 60 minutes or at a scheduled time, allowing shoppers to try outfits at home. Tyro’s delivery partner then waits at the customer’s door for 30 minutes and collects the rejected items.  

An Early Kickstart: Launched in February this year, Tyro claims to have already clocked more than 50K downloads and raised $342K in early funding from Zeropearl VC. Still in its infancy, the startup is eyeing a pie of India’s growing fashion ecommerce market, which is poised to cross the $100 Bn mark by 2032. 

With Myntra, Bewakoof, and Ajio ruling the fashion ecommerce streets, can Tryo’s differentiated approach impress Indian shoppers?